It works great and we've never had any IRS issues.

The IRS generally considers a capital expenditure to be any cost that improves the property, extends its life, or adapts it for a new use.

The 1031 can defer capital gains taxes, but it’s crucial to identify a like-kind property and complete the exchange within the IRS timelines.

Additionally, it can help maximize renovations and improvements.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

However, there’s no set rule on how long you must hold the home as an investment before converting it to your primary residence, but it’s generally advisable to rent it out for at least a year to avoid raising any IRS concerns.

But what you’re encouraging is that when I am 23, I should use the first 4 or so years just building a portfolio of LTR’s and then when I am 27, look into leveraging STR’s to meet the “Real Estate Professional Status” and “Material Participation” the IRS outlines, correct? 

Yes, definitely reach out to an accountant for help with an LLC, an IRS EIN, accounting software recommendations and tax planning. 

To fully understand and maximize these deductions, resources like Stephen Fishman's "Every Landlord's Tax Deduction Guide" or IRS Publication 527 can be helpful.

Just make sure you’re honest with your lender and the IRS to avoid legal issues.

really depends on the state.. for instance OHIO is one of the safest the judge wont confirm the sale unless everything except irs is taken care of.. you just need to know if its a first or second.NV is another pretty easy one at least Vegas. where the sales are handle downtown there is a title company right there and they run title on everything that is going and offer a hand out to any bidders just ask for it..